Latest news with #GlobalXUraniumETF
Yahoo
6 days ago
- Business
- Yahoo
Uranium ETFs Surge on New Meta, Constellation AI Deal
Uranium and nuclear ETFs jumped after Meta Platforms Inc. (META) agreed to buy nuclear power for 20 years from a Constellation Energy Corp. (CEG) reactor in Illinois that had been slated to close, as soaring artificial intelligence use forces companies to find fresh electricity supply. The biggest U.S. uranium exchange-traded fund, the $3.2 billion Global X Uranium ETF (URA), added 3% in early afternoon trading. The $255.2 million Range Nuclear Renaissance Index ETF (NUKZ), with its top holding being a 9.3% allocation to Constellation, added 0.9%. Today's gains add to this year's surge in uranium and nuclear exchange-traded funds, which have been jumping on AI-stoked energy demand and as President Donald Trump takes steps to dismantle nuclear power industry regulations. URA's 19% gain this year beats the 1.4% increase in the Vanguard S&P 500 ETF (VOO). URA had jumped 12% on May 23 after Trump signed an executive order making approvals for new reactors easier as well as opening federal lands to nuclear power plant construction and providing for more robust uranium supply lines. Trump, in his first day in office, declared an energy emergency. The Meta pact follows a similar agreement Microsoft Corp. (MSFT) signed with Constellation this past autumn that would restart the Three Mile Island reactor, as Microsoft's artificial intelligence ambitions consume massive amounts of electricity. 'Securing clean, reliable energy is necessary to continue advancing our AI ambitions,' Meta's head of global energy Urvi Parekh said in a statement regarding the pact to buy energy from the Clinton Clean Energy Center. Uranium & Nuclear ETF Gains—Source: Factset AI inquiries on tools like ChatGPT use more energy than traditional search, forcing companies to scour the globe for new energy sources. The International Energy Agency last year said that by 2026, the AI industry will be using 10 times the amount of energy it used in 2023. Other uranium ETFs jumping today include a 5.3% gain in the second-largest uranium ETF, the $1.5 billion Sprott Uranium Miners ETF (URNM), a 7.4% jump in the Sprott Junior Uranium Miners ETF (URNJ) and 2.3% rise in the VanEck Uranium+Nuclear Energy ETF (NLR). Permalink | © Copyright 2025 All rights reserved
Mint
7 days ago
- Business
- Mint
Why Trump's nuclear plans have so far failed to boost uranium prices
Plans for a U.S. nuclear-power revival have excited uranium investors, stoking demand for shares in companies that produce the fuel. Yet the price miners get in the spot market for the uranium they sell has barely reacted. The spot price for U3O8, a lightly processed concentrate known as yellowcake, this week shed some of the small gains it made a week ago after President Trump signed executive orders on May 23, aimed at quadrupling nuclear-power capacity in the next 25 years. The commodity's price rose to $71.10 a pound on May 26 from $70.50 a pound in the week prior, according to UxC, a market-data firm that assesses uranium prices. This week, it is back at $70.90 a pound. The executive orders have so far had a short-lived impact on the uranium market, said Jonathan Hinze, president of UxC. 'People are waiting to see how these new policies might translate into new reactors and fuel demand, but that will take some time," he said. The industry has reasons for caution. Over the next few years, the market faces a persistent oversupply, according to analysts at Panmure Liberum. They project the average spot price will be back below $60 a pound in 2026. Miners have been ratcheting up production of uranium after the market emerged from a decadelong funk that followed the 2011 Fukushima disaster in Japan. This year, the industry—like many others—is also grappling with tariff uncertainty under the Trump administration, which has paralyzed U.S. utilities. While up from a March low of around $63 a pound, an 18-month nadir, uranium's spot price remains down 1.2% year to date, according to UxC. It traded above $100 a pound as recently as last year on supply disruptions. The spot market—while thinly traded and, consequently, volatile—can be an important indicator of sentiment in the otherwise opaque uranium industry. It is also a source of sales for miners to generate profits. Uranium doesn't trade on an open market like many other commodities. Instead, most uranium dug up by miners is sold under long-term contracts to customers that include U.S. power companies. That term price has sat around $80 a pound for most of this year. The spot trade makes up less than 20% of the market, and includes one-off deals between producers and power utilities as well as traders and funds that hold physical uranium. Recent spot-market sluggishness hasn't curbed excitement in the broader market, as expectations of a nuclear comeback rise. 'It's time for nuclear," Trump said at a signing ceremony at the White House last month. Investors bet on uranium mostly via the stocks of uranium companies or exchange-traded funds. The Global X Uranium ETF—which tracks a basket of companies involved in mining uranium and producing nuclear components—has gained roughly 12% versus its closing value the day before Trump signed the orders. Canadian miner Cameco, one of the world's top uranium producers, is up about 10% over the same period. Citi analyst Samuel Schubert sees reasons to believe the U.S. executive orders could stimulate uranium demand in the near term. 'These aren't just long-dated ambitions," Schubert said in a recent note. He highlighted Trump's order for the Energy Department to work with utilities to increase maximum power at which existing reactors can operate, among other actions. 'We think these executive orders could help reignite investor interest, in particular through uranium ETF demand," added Morgan Stanley analysts in their own note. That could support future spot purchases, given that some physical ETFs buy uranium from the market, they said. Still, the time it takes to develop nuclear capacity means there is likely to be a limited immediate impact on uranium demand more broadly, Morgan Stanley analysts said. The Panmure Liberum analysts said nuclear plans—not just in the U.S., but in Indonesia, Germany, and Belgium, too—could result in prices higher than they currently forecast, but not likely until at least 2027. 'At this very early stage, the uranium market has no useful data to work with yet on the scale/duration of reactor capacity growth in Indonesia-U.S.-Germany-Belgium," the analysts said. Even China, known for its speedy construction, takes between five and 10 years to design, approve, and build a reactor, they said. Write to Rhiannon Hoyle at
Yahoo
30-05-2025
- Business
- Yahoo
5 Sector ETFs That Beat the Market in May
Wall Street staged a solid comeback in May from early April lows, which were triggered by the "Liberation Day" tariffs. The S&P 500 experienced the fastest recovery since 1982, according to Bespoke Investment Group. Trade deal talks and solid tech earnings buoyed market sentiments. A resilient economy added to further strength. The rally has been broad-based. We have highlighted five top-performing ETFs from different industries that were the leaders over the past month. These are Global X Uranium ETF URA, VanEck Vectors Digital Transformation ETF DAPP, Sprott Nickel Miners ETF NIKL, Grayscale Bitcoin Adopters ETF BCOR and Generative AI & Technology ETF CHAT. After the initial shock of the tariffs, there were signs of de-escalation. This month, the United States temporarily slashed tariffs on Chinese goods from 145% to 30%, while China will lower its retaliatory duties on U.S. goods from 125% to 10%. The temporary reduction in rates will run for 90 Trump also postponed the implementation of a 50% tariff increase on all EU products, from June 1 to July 9. With this, the trade negotiations between the two countries have accelerated. The bouts of economic data supported the bullish sentiment. Consumer confidence in the economy improved in May after five straight months of declines. Inflation in April cooled to the lowest level since February 2021. The Consumer Price Index, which tracks a variety of costs throughout the economy, rose 2.3% year over year in April, down slightly from 2.4% in March. Meanwhile, the U.S. labor market remained resilient amid the tariff chaos. The economy added better-than-expected 177,000 jobs while the unemployment rate held steady at 4.2%, providing further assurance about the economy's health (read: Consumer Confidence Surges in May: ETFs to Gain). Total first-quarter earnings for the 477 S&P 500 members that have reported results are up 11.4% from the same period last year on 4.4% higher revenues, with 74.2% beating EPS estimates and 62.9% beating revenue estimates, per Zacks Earnings companies struggled to beat consensus estimates this reporting cycle. However, the technology sector results have been better than expected, with the earnings growth rates primarily in line with recent periods. Notably, the first-quarter revenue beat percentage is above the 5-year average. Uncertainty surrounding Trump's tariff plans continues to linger. While some tariffs were challenged in court, with rulings deeming them unlawful, an appeals court temporarily reinstated them. The legal back-and-forth has introduced volatility and uncertainty into the the rapid market recovery led to elevated valuations, with the S&P 500 trading at over 22 times 2025 earnings. Analysts caution that such levels may not be sustainable without continued positive dig into the details of the abovementioned ETFs:Global X Uranium ETF (URA) – Up 34.6%Global X Uranium ETF provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries. It tracks the Solactive Global Uranium & Nuclear Components Total Return Index and holds 48 stocks in its basket. Canadian firms make up the largest allocation in the basket at 39.7% while the United States accounts for a 16.6% share. Global X Uranium ETF has amassed $3 billion in its asset base and charges 69 bps in annual fees. It trades in an average daily volume of 3.4 million shares (read: ETFs to Capitalize on Trump's Orders to Spur Nuclear Energy).VanEck Vectors Digital Transformation ETF (DAPP) – Up 26.9%VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 23 securities in its basket. It charges 51 bps in annual fees and trades in an average daily volume of 613,000. DAPP has accumulated $182.4 million in its asset Nickel Miners ETF (NIKL) – Up 19.3%Sprott Nickel Miners ETF is the only U.S.-listed ETF focused on nickel mining companies, providing a critical material necessary to meet the rising global demand for batteries and energy storage, along with continuing demand for stainless steel. It tracks the Nasdaq Sprott Nickel Miners Index and holds 21 stocks in its basket. Sprott Nickel Miners ETF has amassed $9.9 million in its asset base and trades in an average daily volume of 40,000 shares. It charges 75 bps in annual Bitcoin Adopters ETF (BCOR) – Up 19.2%Grayscale Bitcoin Adopters ETF offers exposure to a global basket of publicly traded companies that have adopted Bitcoin as part of their corporate treasury. This theme focuses on the long-term growth of the corporate adoption of Bitcoin as a hedge against fiat inflation and a tool for corporate treasury diversification and risk management. Grayscale Bitcoin Adopters ETF has accumulated $3 million in its asset base since its inception in late April and charges 59 bps in annual fees (read: ETFs to Ride on New Wave of $111K Bitcoin Rally). Generative AI & Technology ETF (CHAT) – Up 19%Generative AI & Technology ETF is the world's first Generative AI ETF and is an actively managed ETF. It provides exposure to impactful technological innovations now and into the future and holds 38 stocks in its basket. Generative AI & Technology ETF has amassed $274.6 million in its asset base and trades in an average daily volume of 53,000 shares. It charges 75 bps in annual fees. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global X Uranium ETF (URA): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Sprott Nickel Miners ETF (NIKL): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
URA, Uranium ETFs Surge as Trump Orders Nuclear Reforms
Nuclear energy and uranium ETFs leaped Friday, charged by expectations that President Donald Trump is poised to remove barriers to the industry's expansion. The biggest U.S. uranium exchange-traded fund, the $2.9 billion Global X Uranium ETF (URA) soared more than 12% Friday afternoon, adding to the past month's 26% gain. The No. 2 fund, the $1.4 billion Sprott Uranium Miners ETF (URNM) also gained more than 12%. The top holding in both funds is Canadian miner Cameco Corp. (CCJ), which rose 14%. Trump signed an executive order today making approvals for new reactors easier, opening federal lands to nuclear power plant construction and providing for more robust uranium supply lines. Artificial intelligence computing has created massive new demands for electricity, and Trump in his first day in office declared an energy emergency. 'Trump's embrace of nuclear energy is a tide that lifts the entire nuclear industry, adding a premium to nuclear stocks and increasing demand for uranium,' said Research Lead Kent Thune, CFP. The performance of Uranium and nuclear ETFs has been mixed over the past year, with uranium miners hit particularly hard. URNM has dropped 35%, while the $229.4 million Sprott Junior Uranium Miners ETF (URNJ) has lost 45%. That's, in part, due to a 49% drop in uranium prices since January 2024, according to data on Cameco's website. The world's top producer is Kazakhstan, a close ally of Russia, which has been hit by global sanctions over the war with Ukraine. Canada is the world's No. 2 supplier and has been threatened with sanctions by the Trump administration. Other nuclear and uranium ETFs jumping today include the VanEck Uranium+Nuclear Energy ETF (NLR), which moved 11% higher, and the Range Nuclear Renaissance Index ETF (NUKZ), which added 7%. NUKZ is the outlier with its 39% gain over the past & Uranium ETF Flows—Source: Only eight ETFs are listed on as nuclear/uranium-focused | © Copyright 2025 All rights reserved
Yahoo
26-03-2025
- Business
- Yahoo
Boom in Uranium Stocks Fizzles as Ukraine Ceasefire Talks Build
(Bloomberg) -- Once-booming uranium stocks have been veering toward bust mode to start 2025. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says Trump Slashed International Aid. Geneva Is Feeling the Impact. Paris Votes to Make 500 More Streets Car-Free Escalating trade tensions between the US and Canada, one of the world's key producers of the nuclear fuel, are playing a major part. Lately, so are talks toward a ceasefire in Russia's war in Ukraine, which raise the prospect of looser sanctions on Russian production of the radioactive metal and the potential for more supply. The price of uranium is now down more than a third from early 2024, and has slumped roughly 11% this year alone. The widely followed $2.9 billion Global X Uranium ETF, which mostly tracks mining shares, has declined about 5% in 2025. Meanwhile, Saskatchewan-based Cameco Corp., the largest uranium miner in North America, has dropped 11%, following five years of gains. It was just a little more than a year ago that uranium was booming after roughly a decade in the doldrums. More countries were moving to re-open nuclear reactors, and electricity demand was expected to surge with the growth of artificial intelligence and data centers. Russia's early 2022 invasion of its neighbor only tightened supplies. But for weeks now, the headwinds have been mounting. Investors are reluctant to bet that the stability seen in the shares in recent days will last until they get a better picture of what will happen in Ukraine. Meanwhile, questions around President Donald Trump's tariff proposals have caused utilities to delay signing long-term purchase agreements for the metal, says John Ciampaglia at Sprott Asset Management. 'They're just blowing so much smoke at the market and nobody knows what's what,' said Ciampaglia, CEO of the firm, which offers natural resource-focused ETFs. 'It just creates so much uncertainty that it's paralyzing people making decisions.' Investors, in the meantime, have 'just stepped to the sidelines.' On Monday, uranium shares rallied as part of a broad advance in the stock market on signs that US tariffs will be more targeted than anticipated, lifting the mood around the economic outlook, at least briefly. There's been some other supportive news lately as well. Uranium shares and the commodity price got a lift last week when the world's largest miner, Kazakhstan's NAC Kazatomprom JSC, said it was experiencing supply-chain issues that were making it hard to access the sulfuric acid needed to produce the nuclear fuel. However, that development didn't appear to be enough to sweep away all the doubts that have been building. Another drag on shares of uranium producers lately has come from China, where companies have produced approaches to training AI models that may require less energy, possibly diminishing the push for more nuclear power. In January, the emergence of Chinese AI startup DeepSeek sparked a selloff in energy stocks. Now comes news that Jack Ma's Ant Group had developed its own AI model using Chinese-sourced chips that would cut costs. 'There are going to be more DeepSeeks coming along,' said Brooke Thackray, a research analyst at Global X, an ETF division of Mirae Asset Financial Group. That offering 'changed the backdrop' for expected power demand, Thackray said. Add it all together and 'everybody is kind of in wait-and-see mode,' said Sprott's Ciampaglia. Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World Business Schools Are Back How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P.
